Michigan athletics announced a number of financial projections on Monday night, as well as pay cuts for Jim Harbaugh and Juwan Howard.
Along with AD Warde Manuel, senior-level administrators and other head coaches in the department, Harbaugh and Howard will accept 10 percent salary reductions from August 1, 2020 through the end of the fiscal year.
” Full-time staff members earning between $50,000-$100,000 will have salaries reduced by five percent, and employees earning between $100,001-$150,000 will have wages reduced by 7.5 percent during the same period,” the press release reads. “Staff earning less than $50,000 will not see any reduction in pay.”
Additionally, while Michigan athletics anticipates a $1 million surplus for the current fiscal year, the department projects a deficit for fiscal year 2021. Per projections, Michigan is expecting a revenue of $135.8 million and expenses of $161.9 million.
The proposed athletics budget for 2020-21 was approved by the University of Michigan Board of Regents tonight.
Michigan announces salary reductions for Jim Harbaugh, Juwan Howard and other staffers as part of expense reduction initiatives. pic.twitter.com/MRLhR50miW
— TheWolverine.com (@TheWolverineMag) June 29, 2020
Michigan is not the first school to announce salary cuts in the athletic department. Very likely, they won’t be the last either.
Harbaugh is entering the sixth year of his tenure at his alma mater. The Wolverines are coming off a 9-4 season and are 47-18 overall under his watch.
After a stint as an NBA assistant following a lengthy playing career, Howard returned to Ann Arbor to replace John Beilein before last season. He led the Maize and Blue to a 19-12 record before the season was halted by COVID-19.